EU Warns About the Impact of COVID-19 on Non-Regulated Crypto Investments

European Union’s financial regulatory agency, the European Securities and Markets Authority (ESMA) has analyzed the effects of COVID-19 on the crypto investments and the risks it has developed for investing in non-regulated crypto-assets.

ESMA is the EU’s independent financial authority and it has warned the crypto industry, after analyzing the financial market, about the high-risks that entails the investment in non-regulated crypto assets.

The regulatory body has published the latest report on Wednesday, which highlights the impact of COVID-19 on the financial market and how it has increased the risks regarding the investment in non-regulated crypto-assets more than usual.

According to the authorities, the crypto industry has experienced a huge spike in the value and trading volumes in the latter half of 2020 along with Bitcoin reaching its highest value. ESMA suggests that this spike was fuelled by the positive flow of news in the crypto industry. PayPal’s move has also played a role in this by introducing the crypto buy and sell option on its platform along with the growing attention on DeFi ( decentralized Finance).

Uh oh, is the EU about to make using cryptocurrency more difficult? The ESMA is raising the alarm on “non-regulated crypto-assets.” https://t.co/2vwlefKq2k

— Cointelegraph (@Cointelegraph) March 18, 2021